Andina

IMF warns of banking concentration in Peru

International Monetary Fund

International Monetary Fund

17:31 | Washington D.C. (U.S.), Feb. 2.

The International Monetary Fund (IMF) warned of a concentration in Peru's banking sector and a strong dollarization of its economy.

"Banks appear to be strong, but the banking sector is concentrated, and the economy is highly dollarized," reads the report 'Countries in the IMF Financial Spotlight in 2018.'

The IMF in 2018 will complete ten assessments of member countries' financial systems, to identify risks and propose policies to strengthen their financial stability.

Three of this year's reviews will be for countries with Systemically Important Financial Systems: Belgium, Brazil, and Poland. 

In addition, IMF experts will assess the Euro Area's financial stability. 

Other financial stability assessments will cover Armenia, Jamaica, Namibia, Peru, Romania, and Tanzania.

Peru

In the case of Peru, the assessment will identify measures to continue reducing dollarization risks.

"The assessment will consider measures to further reduce the risks from dollarization, to increase competition in financial services, and to strengthen underdeveloped money markets and capital markets," the report said.

Other key areas will be the institutional mandates and accountability lines for financial oversight, macroprudential policy, as well as crisis management and resolution.

This way, the IMF detailed some highlights for countries under the Financial Sector Assessment Program review in 2018.

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Published: 2/2/2018